Exam 6: Measuring Inflation and Unemployment

Which of the following statements describe(s) the unemployment rate? I. The unemployment rate includes those people who do not have a job and have ended their job search. II) The unemployment rate counts as employed those people who may be only working part-time. III) The unemployment rate is the percentage of the entire U.S. population that does not have a job but is searching for one.

If nominal GDP and the GDP deflator both rise by 5%, then real GDP is unchanged.

Nominal GDP in 2006 was $13,458.2 billion. In 2006, the GDP deflator was 116.9. What was the real GDP for 2006 if the GDP deflator uses 2000 as the base year?

U.S. steelworkers who have lost their jobs to workers receiving lower wages overseas are part of _____ unemployment.

Full employment, or the natural rate of unemployment, is determined by institutional factors such as the presence or absence of employment agencies and their effectiveness.

Suppose a market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the consumer price index for the current period?

When the Bureau of Labor Statistics calculates the consumer price index, it assumes that:

The consumer price index measures the average change in prices received by domestic producers for their output.

As a measure of inflation, the media gives more attention to the GDP deflator than the consumer price index.

The Weekly Jobs Report is used as a way to estimate trends in layoffs and hiring.

Which group is helped by inflation?

Inflation impacts debtors more than creditors.

How many hours does a person have to work for pay to be counted as employed?

Technological innovations in consumer products make it difficult to compare market baskets over time.

Since the invention of automatic teller machines, many bank tellers have lost their jobs. This is an example of _____ unemployment.

Based on the unemployment data since 1985 presented in the chapter, which of the following is (are) true? I. The unemployment rate among blacks has tended to be about double the rate among whites. II) The unemployment rate for college graduates is consistently low. III) People who quit their jobs or are new entrants into the labor force constitute a small percentage of the unemployed.

Which of the following is true about hyperinflation?

From 1999 to 2002, the Japanese inflation rates were, respectively, -0.3%, -0.6%, -0.7%, and -0.7%. During this time, the Japanese economy underwent:

Which of the following statements is (are) true? I. If cyclical unemployment is 0%, then the unemployment rate equals the natural rate of unemployment. II) The unemployment rate consists of only frictional or structural unemployment. III) An unemployment rate of zero percent is generally considered the equivalent of full employment.

During periods of inflation, which of the following events does NOT occur?